NRA (Non Resident Alien) Setup

Purpose:  Use this document to set up NRA (Non Resident Alien Withholding) for Payroll in ctcLink.

Audience:  Payroll Administrators.

You must have at least one of these local college managed security roles:

  • ZC Payroll Data Maintenance
  • ZZ Payroll Data Maintenance
  • ZZ Payroll Processing

If you need assistance with the above security roles, please contact your local college supervisor or IT Admin to request role access.

NRA (Non Resident Alien) Setup

Federal Tax Data

Navigation:  Payroll for North America > Employee Pay Data USA > Tax Information > Update Employee Tax Data

  1. The Update Employee Tax Data search page displays.
  2. Enter search criteria and select the Search button.
  3. The Federal Tax Data page displays.
  4. From the Federal Tax data tab, select the Nonresident alien for the Special Withholding Tax Status field. *This is a required field.
  5. Expand the Tax Treat/Non-Resident Data section by selecting the arrow as shown below.
  6. Select the appropriate Country.
  7. Select the appropriate Treaty ID.
  8. If the NRA is not subject to FWT withholding, select No for the Form W-9 Received option.
  9. Select the appropriate NRA Withholding Rule.  By default, Subject to Rule is displayed.
  10. Select arrow to expand the Education and Government section.
  11. Enter the appropriate Date of Entry. The Treaty Expiration Date should default from the Tax Treaty Table, but can be changed as needed.
  12. Select the appropriate option for the Form 8233 Received field. *This is a required field.

NOTE:  If Form 8233 is NOT received by the employee, then the Tax Rate Before Form Received noted in the Allowable Earnings Codes section will be used.  If the Tax Rate Before Form Received is .9999, then the earnings will be taxed as W-2 and not 1042.

  1. Enter the appropriate Form 8233 Effective Date and Form 8233 Expiration Date fields.
  2. Select the appropriate option for the Form W-8 Received. *This is a required field.
  3. If a W-8 form was received, enter the Form W-8 Effective Date and Form W-8 Expiration Date accordingly.
Tax Treaty, Non Resident Data, Education and Government sections
  1. Select the State Tax Data tab, located at the top of the page, to continue the process.
  2. Uncheck the Resident checkbox.
  3. From the Special Withholding Tax Status drop-down menu, select Nonresident alien (Fed Rules).
    For the Tax Status field, see note below:

NOTE:  For a Nonresident Alien NOT in a state with withholding, for example WA, the Tax Status should be N - Not applicable.

For a Nonresident Alien IN a state with withholding, for example OR or CA, select the appropriate option from the Tax Status lookup icon.

  1. Select the Save button.

Video Tutorial

The video below demonstrates the process actions described in the steps listed above. There is no audio included with this video. Select the play button to start the video.

Video Tutorial via Panopto

View the external link to NRA (Non Resident Alien) Setup. This link will open in a new tab/window.

Job Data

You must have at least one of these local college managed security roles:

  • ZC HR Employee Maintenance
  • ZD FWL HCM View Pay
  • ZD HR Central Config VW
  • ZD HR Admin View Job Data
  • ZD Benefits Employee Data Inq
  • ZD HR Employee Maintenance VW
  • ZD HR Limited Person Job Info
  • ZZ HR Employee Maintenance
  • ZZ SS Workforce Administrator
  • ZZ FWL HCM Pay Process

If you need assistance with the above security roles, please contact your local college supervisor or IT Admin to request role access.

If the TCH earnings being paid to the NRA are coming from Job Data (i.e. Full-Time Faculty setup with a “Salary”), then you’ll need to change the Job Earnings Distribution Earnings Code to the appropriate earnings code for these earnings (for NRA use the TCH earnings code) to ensure the appropriate earnings code is used for the “regular” pay.  In addition you’ll need to update CTC Earnings Distribution and assign the TCH earnings code.

Navigation:  Workforce Administrator > Job Information > Job Data

NOTE:  Fields with an asterisks (*) are required and must have a valid value entered.

  1. The Job Data search page displays.
  2. Enter the applicable search criteria.
  3. Select the Search button.
  4. The Job Data page displays.
  5. On the Work Location tab, enter the *Effective Date (or use the calendar icon to select a date using a calendar view).
  6. Select Earnings Distribution Change from the drop-down menu for the *Action field.

NOTE: In the Job Data component, there are 2 places where Earnings Distribution is managed:

  1. The PeopleSoft delivered Earnings Distribution page, accessed by selecting the link at the bottom of the page.
  2. The custom CTC Earnings Distribution tab at the top of the page.

Be aware, the steps below have navigation for you to put data in both places, starting with the Earnings Distribution link at the bottom.

  1. Select the Earnings Distribution link at the bottom of the page.
  2. The Job Earnings Distribution pagelet displays.
  3. Select By Percent for a valid value in the *Earnings Distribution Type field.
    This should open the Job Earnings Distribution section of the pagelet.
  4. In the *Earnings Code field, select the appropriate Earnings Code for the situation. Use the lookup icon to see available options.
  5. Now that the Earnings Distribution Type and Earnings Code have been identified, navigate to the custom CTC Earnings Distribution tab in Job Data.
    Select the Job Data link, at the bottom of the page, to return to the Job Data page.
Job Earnings Distribution pagelet with Earnings Distribution Type and Earnings Code highlighted.
  1. The Job Data page displays. Select the CTC Earnings Distribution tab at the top.
  2. In the Earnings Distribution section, make sure the *Earnings Code matches the Earnings Code entered on the Job Earnings Distribution pagelet you completed before moving here.
  3. Select the Save button
Job Data page - CTC Earnings Distribution tab with Earnings Code and Save button highlighted.

Video Tutorial

The video below demonstrates the process actions described in the steps listed above. There is no audio included with this video. Select the play button to start the video.

Video Tutorial via Panopto

View the external link to NRA (Non Resident Alien) Setup. This link will open in a new tab/window.

Not Receiving Form 1042

For Non-Resident Aliens that are not receiving Form 1042, the setup is different as shown below.

Navigation:  Payroll for North America > Employee Pay Data USA > Tax Information > Update Employee Tax Data > Federal Tax Data

  1. The Federal Tax Data search page displays.
  2. Enter search criteria and select the Search button.
  3. The Federal Tax Data page displays.
  4. On the Federal Tax Data tab, select Nonresident alien for the *Special Withholding Tax Status field.
  5. Select the Federal Unemployment Tax section, then select the Exempt from FUT box.
  6. Select the Tax Treaty/Non-Resident Data section. (Expand area, if needed, by selecting arrow to the left).
  7. Select the appropriate Country value.  (NOTE:  If the NRA is NOT a resident of a Country in the drop-down, select $S as the Country).
  8. Select the appropriate Treaty ID.  (NOTE:  If the $S Country value was selected, select the QKNA Treaty ID).
  9. The Form W-9 Received value should default to No (which is fine unless the NRA submitted a W-9).
  10. NRA Withholding Rule should default to Subject to Rule.
  11. Select the Save button.

Video Tutorial

The video below demonstrates the process actions described in the steps listed above. There is no audio included with this video. Select the play button to start the video.

Video Tutorial via Panopto

View the external link to NRA (Non Resident Alien) Setup. This link will open in a new tab/window.

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